If you could not attend the Deep Dive into B Lab’s evolving B Impact Assessment standards workshop but are curious about the new standards, you’re in the right place!
On October 30th, our team hosted a comprehensive workshop focused on the new standards aimed at businesses within the B Local Colorado network. The session offered an in-depth exploration of the latest B Corp certification process updates, providing attendees with the tools, knowledge, and resources to better align their operations with the highest social and environmental performance standards.
Through stakeholder engagement and extensive research into the new standards, our team quickly understood the level of complexity in the new updates and the limited capacity that many local B Corps have to get into the nitty-gritty of the updates. We knew we wanted to help build capacity and support local B Corps as they navigate these changes. Our team truly believes in the B Corp movement and felt that enabling companies to prepare and adopt the evolving standards was the best way to create impact.
Workshop Format and Highlights:
The workshop kicked off with an expert-led presentation by our team of graduate students at CU Boulder’s Masters of the Environment Program that outlined the significant changes in the standards, the purpose behind the changes, and key strategies to prepare.
A major event highlight was the discussion, where participants were given time to explore the new standards and chat with other local B Corps on strategies to prepare and adopt the standards. We asked attendees questions like “What is the most concerning/confusing part of the new version?” “What barriers do you anticipate in adopting the B Corp framework?” and “What resources or support would help you overcome said barriers?”. These discussions fostered a collaborative environment, with businesses sharing insights and challenges and providing mutual support.
Additionally, a Q&A session allowed attendees to ask specific questions about the certification process, from the logistics of completing the assessment to how to prepare for the verification process. The diverse range of questions underscored the interest and commitment of the B Local Colorado community to deepen their impact and embrace the updated standards.
So, what is changing?
The evolving B Impact Assessment is B Lab’s seventh iteration. It is a major update to the evolving B Corp movement and provides a more robust definition of what it means to be a B Corp. The new framework is structured around increased rigor and transparency in the assessment, proportionality, and improved corporate governance and responsibility across environmental and social efforts. Below are the significant framework changes under the latest version:
Proportionality:
Requirements for existing and new B Corps will now be tailored to the company’s specific size and sector. Large corporations will have different and more rigorous requirements than smaller companies to provide a more proportional and equitable B Corp assessment process that coincides with a company’s impact. B Lab has set forth a table to determine your company’s size category, which is determined by annual revenue or number of employees, whichever is larger. Further information can be found here.
New Impact Topics:
Under previous versions of the B Impact Assessment there were 5 Impact Areas: Customers, Governance, Environment, Community, and Workers. Under the new version, there are now 9 Impact topics: Foundation Requirements, Complimentary Impact Topics, JEDI, Human Rights, Fair Work, Purpose & Stakeholder Governance, Government Affairs and Collective Action, Climate Action, and Environmental Stewardship & Circularity. B Lab introduced more Impact Topics under the new standards to increase the robustness of the B Corp assessment and provide more granularity across material topics.
Impact Business Models:
Impact Business Models are considered “the secret sauce” of the B Corp Assessment and are an incredibly important part of how a company, internally and externally, measures its performance. Impact Business Models will still be incorporated into the evolved standards, but scoring will not be associated with points. Instead, companies that performed well compared to other companies that used similar Impact Business Models in their assessment may receive exemptions in their requirements or time to complete the requirements.
Baseline Performance Requirements:
One of the significant changes under the new standards is that there will no longer be ANY points associated with the scoring and evaluation process in the B Impact Assessment. Companies will now be required to have baseline performance across the Impact Topics and will be assessed on whether they “Meet”, “Do Not Meet”, or “Exceed” the performance detailed in the requirements.
Continuous Improvement Structures:
Outside of the performance requirements in the Impact Topics, B Corps will also be encouraged to go “above and beyond” the requirements over time. More information can be found here.
When are these changes happening?
While there have been some delays in developing these standards, B Lab is expected to finalize them and release them in early 2025. Using a phased approach, B Lab has ensured that they will support a smooth transition into the new standards. According to their recertification timeline, a small cohort of companies will certify under the new standards in 2026.
What should I do to prepare for the new standards?
While preparation and adoption of the new standards will look differently for varying B Corps, we recommend dedicating staff time and efforts to the following:
Spend ample time diving deep into the new draft standards on B Lab’s website. Involve relevant staff and stakeholders in this exploration to create a robust and collaborative preparation strategy.
If you are an existing B Corp, conduct an audit and/or gap analysis of your company’s B Corp performance under previous versions to determine how you may perform under the newest assessment standards. Understand where your company’s strengths and gaps lie within the new performance requirements to gather key information on any steps your organization needs to take to meet the new standards.
Start gathering data and adopting new practices early to get ahead of the curve! Given the level of complexity and changes happening under the new version, your organization must dedicate time and resources to prepare, and starting early never hurts!
Moving forward, we encourage all B Corps to continue engaging with the B Local Colorado community and leverage the resources and connections available to support adopting these new standards. With the new version setting higher standards for impact, we are excited to see more Colorado-based companies achieve certification and contribute to a more sustainable and equitable economy.
Thank you to B Local Colorado for sponsoring this workshop, helping put this amazing and informative event together, and for Integrated Work in Boulder for hosting us at their beautiful office!
